Page 59 of The Atlas Maneuver

The American Revolution was the first war financed by paper money. And as long as that paper was supported by gold or silver it remained desired and people believed in it. By the turn of the 20th century gold was the ultimate value behind nearly all of the world’s currencies.

And for good reason.

It was hard to acquire, did not rot, rust, or deteriorate, and was continuously recycled, generation after generation. For a nation to create more money, or borrow money, it had to have more gold. The two were linked together. The gold standard united the world, doing what no conqueror or religion ever could. But all that collapsed during World War I, when nations came off the gold standard so that they could issue more paper money, unbacked by gold, to finance the fight. After the war none of those governments wanted to return to the gold standard. They liked the power they’d acquired over their own economies. New social systems had also emerged. Communism and national socialism particularly, which both echoed absolute control over financial systems. Money was no longer issued in accordance with gold reserves. New money came into being whenever the government wanted. The United States came partially off gold in 1933, then completely in 1971.

Other nations did the same.

And money became merely fiat. Government-issued currency unbacked by any physical commodity like gold or silver, its value derived solely from the relationship between supply and demand and the stability of the issuing government. By the turn of the 21st century over two hundred national currencies existed around the world, each one controlled by their governments and backed by nothing more than faith. A gold-based currency had been limitedby the amount of gold in the world, which constantly fluctuated. But with fiat money governments could print as much money as they liked. Literally generating wealth out of thin air.

But printing more money came with consequences.

Each time it was done, the value of the money that already existed diminished. Which simply forced the printing of more money, which drove down the value even further.

A vicious cycle that continued to this day.

And would eventually render all money worthless.

Her mother had been right.

Money was merely a tool that could be manipulated.

The trick was in knowing how.

“Katie, an economy is not a single, monolithic creature,” her mother said. “Contrary to what governments want you to believe, there is no central decision-making mechanism, no single state of being. Analysts talk about an economy being in good or bad shape. They use terms likebullandbearfor stock markets. Academics refer to the desired state of an economy as beingin equilibrium. But those are poor ways to think, because, as I said, an economy is not one single thing.

“Instead, an economy is far more like an ant colony, where thousands of insects act both independently, yet collectively, at the same time. Economic activity involves hundreds of millions of independent actions made each day by businesses, governments, people. It’s an aggregate. And the amazing thing is that it’s never the same from one minute to the next. Constant change. Constant evolution. Constant problems. Understanding this is key to understanding everything.”

She recalled every word her mother had said next, as it had been vital to what they had in mind for the world.

“There are three critical, decision-making principles you must never forget. The first is that no economic decision is made ina vacuum. What happens in the world will, without question, shape and influence every economic decision. The second is that the past informs the present. History matters. Every human choice is influenced by the past, and those choices directly influence economies. And finally, never forget that fear and uncertainty always, and I mean always, hinder good decision making. Especially when that fear morphs into anger.”

“You’re angry,” her mother said. “I can see it.”

“I’m furious. Kelly was my friend. It was her idea that governments could use bitcoin as their reserve currency. She planted that thought in my head. We did all this together, then she betrayed me.”

“You should be angry. But not at her. At yourself.Betrayal oozes out at every pore.Freud was right, and you missed the signs.”

The words stabbed her, like a knife.

She had missed the signs.

Totally.

“Do you think the Japanese know anything about Atlas?” her mother asked.

“I have no idea. You would think, if they did, it would have been mentioned.”

But not a word.

“You must assume that they do,” her mother said. “And the CIA breaching the Geneva vault today? That cannot be coincidence. Something is happening, and it’s coming toward you from different directions.”

She agreed and smothered the countless questions forming in her mind, wanting to shift ground and find a safer level of conversation, but her mother’s calculating emotions, though old, were not deadened.

She knew what was coming.

“Correct your error,” her mother said, the eyes staring at her icy blue, cold, and confident. “Freud was right about something else too.The goal of all life is death.”

Her mother had been the one who encouraged the hiring ofKyra Lhota. But that had been about acquiring bitcoin. This was now a matter of survival.

---